Last Wednesday’s signals produced a profitable short trade following the bearish outside candle rejecting the resistance level at 1.3588, although it gave little more than the minimum 20 pips profit.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am until 5pm New York time today.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.3588.
- Put the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
- Short entry after the next bearish price action rejection following a first touch of 1.3705.
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CAD Analysis
There is no reason not to be bullish on this pair. It is strong short and medium term bullish trends, and has a long-term bullish trend. It has just made a new 1 year high price. Over the short term, there is a clear bullish channel structure which keeps rising. There is every indication that the price will continue to rise this week, and if the U.S. Dollar gets a boost from the FOMC and Non-Farm Payrolls later in the week, further rises could be quite dramatic.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, preceded by a minor speech from the Treasury Secretary at 12:45pm.